Revlon Swings to Profit as Revenue Climbs

By Joshua Jamerson 

Revlon Inc. said it swung to a profit as revenue climbed in the latest quarter, helped by lower but still persistent foreign currency headwinds.

Revlon Chief Executive Fabian Garcia said that while consumer sales in the U.S. decreased slightly, "consumption remained strong and we gained share during the quarter."

In March, Revlon said it appointed Ms. Garcia as its CEO. Mr. Garcia was previously chief operating officer for global innovation and growth at Colgate-Palmolive Co.

In January, controlling shareholder and Chairman Ronald O. Perelman disclosed he was exploring strategic alternatives for the company. Then-Chief Executive Lorenzo Delpani said in February that he would step down as president and CEO as of March 1 for personal reasons.

Sales in Revlon's consumer segment fell 1.3% to $320 million. However, excluding foreign exchange effects, sales in the segment grew 2.5%, thanks to higher sales of Revlon hair and nail products as well as its Sinful Colors cosmetics. Sales in the professional segment grew 2.7%, excluding currency effects, to $115.1 million in part because of sales increases in its American Crew men's grooming products. Including currency headwinds, professional sales edged up 0.8%.

Over all, the company reported a profit of $11 million, or 21 cents a share, compared with a year-prior loss of $900,000, or 2 cents a share. Excluding items, the company said it earned 25 cents a share compared with a penny a year ago.

Total revenue at the New York-based company edged up 0.3% to $439.6 million. Excluding foreign exchange impacts, sales rose 3.6%.

For the quarter, the company said it gained $3.4 million on foreign currency compared with a loss of $15.9 million in the year-ago quarter, helped by the revaluation of an intercompany loan.

Shares of Revlon, which have risen 28% in the last three months, were inactive in premarket trading.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

May 06, 2016 09:31 ET (13:31 GMT)

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